Palo Alto Networks (NASDAQ:PANW) Shares Down 3.5% Following Analyst Downgrade

Key Points

• Palo Alto Networks shares fell 3.5% to $322.66 after Jefferies cut its price target from $450 to $400, while maintaining a Buy rating.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $397.49.
• The company’s latest quarterly results beat estimates, with EPS of $1.02 and revenue of $3.41 billion; revenue rose 34.5% year over year.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report)'s share price was down 3.5% on Thursday after Jefferies Financial Group lowered their price target on the stock from $450.00 to $400.00. Jefferies Financial Group currently has a buy rating on the stock. Palo Alto Networks traded as low as $314.79 and last traded at $322.66. 5,966,282 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 8,007,714 shares. The stock had previously closed at $334.47.

A number of other research firms also recently commented on PANW. Benchmark raised their target price on Palo Alto Networks from $340.00 to $400.00 and gave the company a "buy" rating in a report on Monday, August 24th. Morgan Stanley set a $410.00 price target on shares of Palo Alto Networks and gave the stock an "overweight" rating in a research note on Monday, September 21st. Citizens Jmp increased their price target on shares of Palo Alto Networks from $320.00 to $415.00 and gave the company a "market outperform" rating in a report on Wednesday, August 12th. Roth Capital reiterated a "neutral" rating and issued a $300.00 price target (up from $210.00) on shares of Palo Alto Networks in a report on Wednesday, September 2nd. Finally, Robert W. Baird set a $420.00 price objective on shares of Palo Alto Networks and gave the company an "outperform" rating in a research note on Wednesday, September 2nd. Thirty-nine research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Palo Alto Networks presently has an average rating of "Moderate Buy" and a consensus price target of $397.49.

Insider Transactions at Palo Alto Networks

In other news, EVP Dipak Golechha sold 27,500 shares of the stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $391.60, for a total value of $10,769,000.00. Following the sale, the executive vice president directly owned 117,750 shares in the company, valued at $46,110,900. This represents a 18.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Aparna Bawa sold 250 shares of the firm's stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $412.28, for a total transaction of $103,070.00. Following the transaction, the director directly owned 4,427 shares of the company's stock, valued at approximately $1,825,163.56. This trade represents a 5.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 54,210 shares of company stock worth $20,823,029 in the last 90 days. Insiders own 0.55% of the company's stock.

Institutional Investors Weigh In On Palo Alto Networks

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Verus Financial Partners Inc. raised its holdings in shares of Palo Alto Networks by 4.3% in the third quarter. Verus Financial Partners Inc. now owns 632 shares of the network technology company's stock worth $251,000 after acquiring an additional 26 shares during the last quarter. Consilium Wealth Advisory LLC boosted its stake in shares of Palo Alto Networks by 2.5% during the third quarter. Consilium Wealth Advisory LLC now owns 1,117 shares of the network technology company's stock valued at $444,000 after acquiring an additional 27 shares during the last quarter. MBA Advisors LLC increased its position in Palo Alto Networks by 1.7% during the 3rd quarter. MBA Advisors LLC now owns 1,840 shares of the network technology company's stock worth $731,000 after purchasing an additional 30 shares in the last quarter. Grove Bank & Trust increased its position in Palo Alto Networks by 7.0% during the 3rd quarter. Grove Bank & Trust now owns 472 shares of the network technology company's stock worth $188,000 after purchasing an additional 31 shares in the last quarter. Finally, Riversedge Advisors LLC raised its stake in Palo Alto Networks by 2.5% in the 3rd quarter. Riversedge Advisors LLC now owns 1,285 shares of the network technology company's stock valued at $511,000 after purchasing an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 79.82% of the company's stock.

Palo Alto Networks Stock Down 3.5%

The firm's 50 day moving average is $367.81 and its two-hundred day moving average is $275.82. The stock has a market cap of $264.18 billion, a price-to-earnings ratio of 632.68, a P/E/G ratio of 9.36 and a beta of 0.96. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.06.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings results on Tuesday, September 1st. The network technology company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.04. The company had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.35 billion. Palo Alto Networks had a net margin of 2.67% and a return on equity of 8.50%. The firm's revenue for the quarter was up 34.5% compared to the same quarter last year. During the same period last year, the company earned $0.95 EPS. Palo Alto Networks has set its FY 2027 guidance at 4.160-4.190 EPS and its Q1 2027 guidance at 0.960-0.980 EPS. On average, sell-side analysts predict that Palo Alto Networks, Inc. will post 2.32 EPS for the current year.

About Palo Alto Networks

Palo Alto Networks, Inc. is a cybersecurity company that provides products and services to help organizations protect their networks, cloud environments, devices and applications. Its offerings include next-generation firewalls, cloud security tools, secure access services and platforms for detecting and responding to cyber threats. The company's product portfolio includes Prisma for cloud and network security and Cortex for security operations, including threat detection and response. It also provides cybersecurity consulting and incident-response services through Unit 42.

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